Quarterly report pursuant to Section 13 or 15(d)

CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)

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CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) - USD ($)
 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Cash flows from operating activities:    
Net income (loss) $ (1,679,800) $ (2,117,200)
Adjustments to reconcile net loss to net cash provided by operating activities:    
Provision for doubtful accounts receivable 3,900 (17,100)
Depreciation and amortization [1] 570,900 439,900
Stock-based compensation expense 84,000 175,800
Non-cash expense for interest, warrants - accretion of debt discount 101,700 400
Gain on disposition of assets (25,600) (45,400)
Changes in operating assets and liabilities:    
Accounts receivable (734,200) 1,389,500
Costs in Excess of billings on uncompleted contracts 204,000 (358,400)
Prepaid expenses and other assets 304,000 150,500
Accounts payable and accrued liabilities 509,400 (118,900)
Billings in excess of revenue on uncompleted contracts 112,500 93,000
Deferred revenue 47,800 620,500
Payroll taxes payable 17,100 17,100
Net cash (used in) provided by operating activities (484,300) 229,700
Cash flows from investing activities:    
Insurance proceeds from property damage 59,000  
Purchase of property and equipment (177,300) (448,300)
Purchase of intangibles (37,500) (58,900)
Net cash used in investing activities (155,800) (507,200)
Cash flows from financing activities:    
Payments of notes, short term financing and capital lease obligations (559,600) (354,800)
Payments of related party notes payable and accrued interest (20,000) (42,000)
Proceeds from convertible debt 250,000 1,000,000
Proceeds from short term financing 400,000  
Proceeds from exercise of warrants 25,000  
Proceeds from warrant extensions 29,900  
Proceeds from the sale of common stock and warrants, net of expenses 400,000  
Net cash provided by (used in) financing activities 525,300 603,200
Net increase (decrease) in cash (114,800) 325,700
Cash at the beginning of period 257,100 [2] 443,000
Cash at the end of period 142,300 768,700
Supplemental disclosures of cash flow information:    
Cash paid for interest 207,600 32,400
Discount on convertible debt 4,900 14,600
Conversion of debt and accrued interest to equity   257,400
Financing of prepaid insurance premiums 278,600 273,900
Capital lease additions   $ 214,400
Issuance of common stock for other asset $ 720,000  
[1] Includes depreciation of property, equipment and leasehold improvement and amortization of intangibles.
[2] These numbers were derived from the audited financial statements for the year ended December 31, 2015.